Encouraging continuous patronage of loyal Customers by rewarding them with gift
/ discount coupons is the basic concept of any Loyalty System. Currently, business
establishments are launching such Loyalty Schemes, which involves:
• Planning the Scheme
• Executing it by printing pamphlets for publicity, printing the required gift /
discount coupons etc.
• Manually distributing the coupons to regular Customers at every outlet
• Collection of all the Coupons by the Customers to redeem the benefits
The entire process is very laborious and time consuming. The Loyalty System introduces
an automated way of promoting Loyalty, at the same time boost organizational sales
by way of issuing Loyalty Cards, which is a novel idea.
Instead of the long process of printing coupons and issuing them to individual Customers,
and the Customers accumulating the coupons and then redeeming benefits, Loyalty
Cards which carry all details with respect to a Scheme, can be issued to Customers.
Bonus points are awarded to the Customers for every purchase of a pre-defined amount
and all the details of the purchase are recorded on the backend system against customer
account. Customers can redeem the benefits at any of the authorized outlets of the
business establishment that launched the Scheme.
LS owned by a Loyalty Service Provider enables a Scheme to be common across two
or more Clients. Bonus points gained at one Client outlet would be redeemable at
the other Client’s outlet.
The Loyalty System is an easy to use, extremely convenient system designed to work
either as a standalone system or interface with the existing Card Systems.
The new loyalty program will need to incorporate unique tactical offers and value
added benefits, including rewards for specific outlet visit frequency and high spend
levels. To instil customer motivation, the program must deliver a high degree of
“wow factor” and instant gratification such as surprise awards, instant free gifts
and money saving coupons, as well as rewards carefully targeted to match the profile
of the individual loyalty customer.
Loyalty System is a plastic card/microchip-based consumer loyalty program, which
is based upon the accumulation and redemption of loyalty points through a wide and
diverse range of collection and redemption channels. Designed to reward retail purchases.
Incorporating the above requirements, Mars-Data proposes a Loyalty System that supports
Single as well as Multiple purses.
The following pages give details about the System, its requirements and functionality.
Key Features
Loyalty System can function:
• On a global one Merchant level
• On a Group of outlets of a single Merchant level.
• On a specific outlet level of a Merchant
Loyalty system supports RFM.
• Recency:
A gift coupon for visit between x and x time (Happy hour).
• Frequency:
Option to track Frequency of visit for Generic purse as well as private purse
application at both Merchant and outlet level.
Option to provide free coupons/ extra points on the nth visit.
• Monitory:
Gift coupon if Total value of single purchase exceeds ‘xxx’ Amount.
Gift coupon if Total value of multiple purchases exceeds ‘xxx’ Amount.
X% of bill value can be printed as a coupon for a discount against next purchase
Loyalty System rewards points based on the Scheme and generates coupons as well
as can points based on the RFM.
System facilitates Single and Multiple coupons printing through the option of variables.
Coupons can also be generated based on the Purchase History of the individual Customers.
System facilitates coupons independent of schemes like, marketing messages to be
positioned at the bottom of the receipt.
Bonus points
Double/ Triple points for a defined period maintained at the host .
Transaction value based double points. More points for more spend.
If single Transaction value exceeds ‘xxx’, then bonus points ‘yy’ can be given.
Redemption of points can be made through Merchant System supports both Online Redemption.
PIN will only be used for redemptions. In addition to this PIN can also be set
for any other Transactions like Purchase etc.
An online adjustment of points at the time of redemption will occur on the generic
as well as private purse.
Point’s value from the Loyalty System: All points will have the same generic “accumulation
value” and “redemption value”:
Common value of each point = 0.1x Amount Spent
Standard accumulation value = 1% of spend value.
Merchants have the ability to award multiples of the standard “accumulation value”
e.g.:
Triple points = 3 points for each 10(Amount Spent)
10 fold points = 10 points of each 10 (Amount Spent)
System Architecture
